Growth of IoT technology along with surge in number and traffic of automotive websites is projected to drive the Automotive online advertising market during the forecast period 2020 - 2025. Global automotive online advertising market generated a value of $9321.44 mn in 2019 and is estimated to reach $22925.89 mn by 2025, growing at CAGR of 16.2% during the forecast period of 2020-2025.
Automotive online advertising market is analyzed to witness notable growth during the forecast period 2020-2025, owing to the rise in online sales of second hand cars and cut – throat completion among automotive manufacturers. Automobile industry has already moved into digital Era. Various domains of automobile industry include safety engineering, sophisticated manufacturing, automobile purchasing, and maintenance are experiencing emergence of digitization. Because of this, new innovations such as Internet of Things (IoT) Technology which is set to dominate the list of most essential things connected to internet during the forecast period 2020-2025.
By Format, the search engine marketing segment dominated the automotive online advertising market in 2019 and is estimated to grow at a CAGR of 11.9% during the forecast period. However, Social Media Influencer Advertising segment by format is estimated to grow with the fastest CAGR of 25.1% during the forecast period 2020-2025. This is owing to the increasing time spent in video platforms and it focuses on impression-based buying with the increase in online viewing across multiple devices. The use of extensive keyword lists power unique SEM campaigns, and each keyword produces a targeted ad that generates solid leads for dealership. Automotive SEM campaigns are ideal for the competitive automotive industry for several reasons, including: Dealership Customization, Measurable Results, Increased Online Presence. In 2020, Automotive SEM depends on the recent data as today’s consumers are obsessed with research. This primarily affects PPC for auto dealers, instead of SEM. But, this search trend is important to understand for either channel because of the increasing need to understand proper attribution.
North America is the major region dominating the Automotive Online Advertising Market with revenue of $2592.66 mn in 2019 and is expected to grow at a CAGR of 13.9% during the forecast period of 2020-2025 to generate a revenue of $5649.40 mn in 2025. U.S. in North America region is dominating the Automotive Online Advertising Market generating a revenue of $2129.17 mn in 2019. This is owing to the high rate of digital spending by the automotive companies present in the region and the presence of key players in the country. Rapidly increasing internet penetration and expansion of digital content have made digital advertising in North America a multi-billion-dollar industry. Automotive marketers know that more shoppers are turning to the internet to do their research. Rapidly increasing internet penetration and expansion of digital content have made digital advertising in North America a multi-billion-dollar industry. Moreover, the rise of OTT video platform viewership that includes digital TV is enhancing the automakers to increase spending on this type of platform for online advertisement. Automotive marketers know that more shoppers are turning to the internet to do their research. Instead of visiting multiple dealerships to compare brands, buyers can now compare brands, models, colors, and prices on multiple online sites.
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Automotive online advertising market Growth Drivers:
- Growth of IoT Technology
IoT technologies and services have transformed the marketing and advertising ecosystem of automobiles and are witnessing a steady influx of new advertising service providers. The continuing evolution of the trends in advertising and its impact on customers are set to drive the market. The extensive use of IoT is set to generate leads. Inbound marketing and Outbound marketing is a way of informing prospective automotive customers about new automobile releases and newsletters. It provides data and insights into new, unexplored markets and demographics and how they analyse and assess their efforts. This data information through IoT platform is used for customer relationship management and informing new product development. It can also be used to optimize advertisement marketing messages while potentially delivering them through new online channels.
- Advertisements Put Out Through Video and Audio Streaming Platforms
Digital video advertising is a strategy that can work for any type of company; B2B or B2C, enterprise or SMB, high-tech or analog products. According to industry estimates, expenditure on mobile video advertisements and others advertisements are expected to skyrocket. OTT streaming video presents an opportunity to speak to an audience that is increasingly difficult to reach through traditional media channels. It gives the users more intuitive content, customized to users’ different preferences, more integration with dealer sites and inventory search functions, compare additional options within an automaker’s product line. Automotive advertisements are often aired through streaming platforms such as YouTube, Spotify, Hulu and others where there are copious amount of users from which there would be prospective buyers.
In June 2020, -Sincro, an Ansira company, and Facebook announced a partnership that introduces Sincro as an automotive vendor on Facebook’s partner integrations platform to offer vehicle catalogs to auto dealers. As a result, dealers are now able to request a vehicle catalog from Sincro directly from their Facebook Business Manager, streamlining the process of creating Automotive Inventory Ads.
In February 2018, Cars.com Inc. announced that it has entered into a definitive agreement to acquire privately-held Dealer Inspire and Launch Digital Marketing, market-leading technology companies that provide digital solutions to automotive dealers, for $165 million in cash at closing with potential additional consideration based on future performance. Cars.com will supplement Dealer Inspire's and LDM's sales of innovative dealer technologies by integrating and distributing relevant digital solutions through the Company's sales network for the benefit of its more than 20,000 dealer customers nationwide.
The Major Players in this Market Include
The major companies in the Automotive online advertising market include CMB Automotive Marketing Ltd., WDA Automotive Marketing, Digital Throttle, P.Ten Marketing, Make & Model, Limelight Digital, R6 Digital, DBC2, Modix, Zerolight, Amzon.com Inc., Facebook Inc., Google Inc., Microsoft Corp., Cox enterprises Inc., Edmunds and Bobit Business Media among others. With the advent of electronic communications, advertising media choices have shifted and in many cases decreased in price. With Internet pay-per-click advertising, companies have the opportunity to decrease waste circulation, paying only for potential customers who click on your banner or display ad on a website page. Decreasing the cost of advertising while increasing the exposure is possible using social media, which consists of websites that let people share information with their friends, including recommendations of businesses, products and services
Automobile Advertisers were once limited to home TV Screen to deliver video content, now with growing technology and access they have ability to provide engaging video content to consumers on move. With advancement in multiscreen environment it offers opportunities to customize video messaging to each type of screen and potentially to know where the consumers are watching content as well. With the evolving of new auto buying model different consumers do most of their research before visiting to showroom. With this the dealers can use digital video to not just provide information but to build rapport with consumers and help lead them to visit dealership in terms of buying mode. With ensuring proper audience it can lead to demand of Automotive Online Advertising Market with consumer preference changes periodically and is estimated to grow as great phase during forecast period 2020-2025
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